NHL Lockout: ‘This is not a good day’ as sides blast each other, optimism for hockey dashed

After proposing a new deal to the players, the NHL received a counter-offer Thursday afternoon from the NHL players. It came in the form of three proposals from the association.

And now the two sides are completely stalled. It’s an impasse with no positive signs at all. The players took the offer as a 13% rollback in salaries in a league that’s growing at more than 7% a year, and weren’t interested.

Gary Bettman spoke first to the media. “It is clear we are not speaking the same language,” he said. “We were hopeful and optimistic what we were offering was fair.”

Bettman said the NHLPA offered three variations but none even approached 50-50 revenue split. “Things are not progressing,” he said and believes they were a “step backward.”

“I am thoroughly disappointed.”

Bettman called the offer made by the owners as too generous for some owners, but went forward with it anyways. He said it is the best offer possible, though did allow room for some tweaks to proposal. Instead, he called the players’ response very similar to every proposal the players have made and rejected.

He added the time is ticking on things like the Winter Classic, between the Toronto Maple Leafs and Detroit Red Wings. Bettman said decisions on spending millions of dollars have to be made soon, and if there isn’t any progress, then the money would not be spent and the January 1 event would be cancelled.

“I wish I had better news,” Bettman said and left the room.

NHLPA leader Donald Fehr spoke later, and reminded the media of the players’ previously taking a 24% pay cut – concessions worth $3.3 billion over the life of the last agreement. Meanwhile the NHL had record revenues.

Of course, the players also did see their average salaries skyrocket.

Fehr called the current proposal a reduction of players salaries “only” 12.3%. The players want to know how that could be fair?

“We estimate over the six years, this would result in players salaries being lowered by $1.65 billion,” Fehr said, based on a 5% growth of league revenues.

“It’s not hard to figure out why the owners feel that would be a good deal,” Fehr said.

On top of that, the rules of free agency would tilt more toward the owners, length of contract, cap rules all would move more in favour of the owners.

“What is the articulated reason that they want this other than the basketball owners got a deal they like better than the current hockey deal. And the football owners got a deal they like better than the current hockey deal. We offered to take the baseball deal.”

The owners didn’t want to use a non-salary cap league as a reference point.

The players don’t see any reason to go backwards or to take less.

The players made three proposals, three alternative ways to look at this.

1. Start out with a fixed player share for three years, then if revenues hadn’t reached a certain point, that level was frozen. The 50% share would be reached in the fifth year under 5% growth. If the industry grows at 7.2%, they reach 50.6% in year three.

2. Use 5% growth, and instead of taking 57% they get down to 50%, but not all at once, and not with salary concessions.

3. The owners want 50-50, which reduces everyone’s salaries 13%. The players think they should honour the contracts they signed, and they’ll move to 50-50. We segregate the 13%. The other 87% goes into a pool with HRR and that starts right now. We’ll get you to 50-50, but you have to honour the contracts you just signed.

“We think it really is fair. It couldn’t be more balanced. What it doesn’t do is give the owners an agreement right now that gives the owners billions of dollars.”

Fehr estimated savings to the owners of between $790 million to over $1.1 billion under their first proposal.

After the proposal was made, they take a very few minutes, Fehr said, and we are told two things – all three proposals are rejected in their entirety and the NHL proposal is their best offer. Bettman says they’d agree to tweak, but that’s it.

“If you assume that’s their best offer why did we see it four weeks into the lockout?” Fehr asked.

“Today is not a good day.”

PA is still trying to negotiate based on fixed money share. It won't work. Why try?

I'm the Senior Producer of video for the Postmedia Network, an avid hockey player and a rep hockey and baseball coach. My career has taken me from general assignment reporting to Toronto City Hall to ... read moreEditor of the Toronto Sun, and managing national commentary for Sun Media. I like to disappear in the mountains in Kananaskis in the winter. Follow me @robeditsView author's profile